Historic Building, Modern
For Sale
Contact for pricing
2004 McCallie Ave, Chattanooga, TN 37404
Updated 1935 building suitable for retail, office, or STVR.
Property Size1,872 SF
Price / SF$235.04
Days on Market160
Property Features for 2004 McCallie Ave
General Information
Standard status
Active
Size
1,872 SF
Class
A
Property subtype
Mixed Use, Office, Special Purpose
Zoning
C-C
Investment Type
Owner/User
Building Details
Year Built
1935
Year Renovated
2026
Buildings
1
Stories
2
Units
1
Listing Agency:
Keller Williams Realty
(423) 664-1600
Listed By:
Jeffrey Dodson · License #GA 336360
Source:
Crexi
Added: Mar 4
Changed: Aug 8
Last Checked: Aug 9 at 3:24PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Realty
Investment Insights
Based on property information with market context.
This historic 1935 building has been updated for modern retail, office, or short-term rental use. The property is located in an area with C-C zoning. It combines classic character with functional upgrades, making it suitable for professional services, creative studios, or small retail and office operations. Recent infrastructure improvements include a new roof, new HVAC and ductless systems, and new gutters. The exterior features updated siding and stonework, providing a strong street presence for signage and branding. The interior layout is flexible, with an open main level that includes a large kitchen, which can be converted to a reception area and employee breakroom or kitchenette, an adjacent dining area suitable for meeting space, and a full bath. The upper level is adaptable to private offices, therapy or consulting rooms, or administrative work areas, featuring three rooms and an additional full bath. The property includes hardwood floors and quartz countertops. A large pantry can function as storage, a supply room, or a secondary file or archive area. A laundry room is convertible to a utility or storage closet. The property is located minutes from hospitals, restaurants, and shopping. It is suited for corporate housing, relocation stays, or executive short-term rentals. The property is ideal for office, medical, professional services, boutique retail, or mixed commercial use. The property size is 1872 square feet.
Key Highlights
- C‑C zoning allows for retail, office, or short‑term vacation rental (STVR) use.
- Recent infrastructure upgrades include a new roof, new HVAC and ductless systems, and new gutters.
- Flexible interior layout adaptable for various uses: reception, offices, meeting space, or short‑term rental.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$21,481
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.88%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$429,620
$429.6K
Cap Rate 7%
$306,871
$306.9K
Cap Rate 9%
$238,678
$238.7K
Market Conditions
NOI Build-Up for 1,872 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$33.7K $18.00/SF
− Vacancy
−$5.1K −$2.70/SF
EGI
$28.6K $15.30/SF
− OpEx
−$7.2K −$3.82/SF
NOI
$21.5K $11.48/SF
Area
Chattanooga, TN
Vacancy
15.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$429,620
Cap Rate 7%
$306,871
Cap Rate 9%
$238,678
Alternative Uses
Best Use
Office B
$306.9K
$268.5K – $358.0K
NOI $21,481 @ 7.0% cap · market cap 4.88%
Second Best
Mixed Use
$295.2K
$258.3K – $344.5K
NOI $20,667 @ 7.0% cap · market cap 4.70%
Theoretical Best
Office A
$413.4K
$361.8K – $482.4K
NOI $28,941 @ 7.0% cap · market cap 6.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,644
Businesses Nearby
Explore this area
Business Placement
Demographics for 37404, TN
13,106
Population
5,887
Households
2.2
Avg Household Size
34
Median Age
32%
College-Educated
86%
High-School Grad
5.2 sq mi
ZIP Area
2,520
Density / Sq Mi
$53,585
Median Household Income
$35,983
Median Earnings
$999
Median Rent
$235,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Updated 1935 building suitable for retail, office, or STVR.
Where is this mixed-use property located?
The property is located at 2004 McCallie Ave Chattanooga, TN.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: C‑C zoning allows for retail, office, or short‑term vacation rental (STVR) use.; Recent infrastructure upgrades include a new roof, new HVAC and ductless systems, and new gutters.; Flexible interior layout adaptable for various uses: reception, offices, meeting space, or short‑term rental.
